Mentions Property Collectives

In 1990s Berlin, baugruppen (building groups) came to the fore in response to the German city’s housing crisis. Building groups are DIY collectives of future resident-owners who come together to develop their new homes. Households become producers rather than consumers, so they save on the developer’s profit margin and have more control over building design and quality.

At its peak, about 17% of new homes in Berlin were baugruppen projects. By 2017 more than 600 projects had been completed. The current master plan for redeveloping Berlin’s former Tegel airport calls for baugruppen to produce 2,000 homes – 40% of the project’s housing.

The success of baugruppen has inspired building groups in Australia. Data from one development and advisory service that assists building group members show members have on average saved around 10% on their new home building costs since 2010.

As well, they save on transfer taxes/stamp duties and mortgage interest payments. So in Victoria, for example, total savings could be as much as 16.5% on a A$1 million house.